What Is Your Money Rule? A conversation about the financial lessons that guide us

As I mentioned in my first blog post kicking off the RetailMeNot Savings Appreciation Campaign, I’ve recently boiled down 25 years of personal finance reporting into my latest book, Money Rules. The idea behind it wasn’t particularly original. I’m a huge fan of Michael Pollan, author of, among other volumes, the brilliant little gem that is Food Rules. After months of quoting Pollan’s gems on eating (my favorites include “If it came from a plant, eat it; if it was made in a plant, don’t” and “Don’t eat breakfast cereals that change the color of the milk”) to anyone who would listen, I started to wonder: “Why isn’t there a book like this about money?” That quickly morphed into “There should be a book like this about money!”

Well, voilà. Now there is.

Actually, that’s a little too pat. Anyone who has ever written a book will tell you that the word “voilà” doesn’t even begin to describe the process many of us refer to-while we’re in the depths of it-as “book hell.” Even when you’re working on a book that is as fun as Money Rules turned out to be, there is a lot to it. The process for me involved sitting down and compiling all the financial maxims I had come up with over the years-the “money rules” I had carried with me personally. Then I started to contact my sources, from financial planners to attorneys to mortgage and other experts, to ask them to share their rules. I tell you all of this because at the end of this column, I’m going to ask you to do the very same thing. We’re running a contest to gather the best unpublished money rules. And we’ll be giving away 250 signed copies of my new book to those of you who play along. Stay tuned for RetailMeNot’s Facebook page and Twitter feed for more details.

To get us started, though, I thought I’d share some of my favorite saving- and spending-specific money rules. Yours, however, can be on any financial topic. From investing to job hunting, allowances to tipping, we welcome them all.

Money Rule #8: The more time you spend looking, the less happy you’ll be with what you find.

When an opportunity seems good enough, take it. Researchers surveyed job- hunting college seniors and found that those who searched for perfection generally did land jobs paying 20 percent more. Unfortunately, those former students liked those jobs much less. That makes sense. If you’re looking for the ultimate opportunity, the one you eventually choose is destined to fall short. The not-so-picky students were happier with their jobs. The same applies to any big purchase. Spend days searching for the best flat-screen TV and you’ll always doubt your choice. Find one in a few hours that fits all your needs at a decent price? You’re gonna love it.

Money Rule #13: There is no such thing as chump change.

There’s no getting around the fact that these days even $100 is not a lot of money. Save it every week, however, and invest it in a retirement account where you earn a conservative 6 percent, and keep doing it for 30 years and you’ll have $435,557. In 40 years, you’ll have more than twice that. And that is a lot of money. My point? Saving small amounts regularly is one of those habits that can truly change your life.

Money Rule #48: If you’re “just looking,” don’t try it on.

You’re in the department store or your favorite boutique and you see a pair of pants that looks interesting. Unless you’re in that store to buy pants, do not-I repeat, do not-try them on. Why? Because behavioral economists have found that when you put those pants on and see yourself in them, your mind actually takes possession of them. At that point, not buying the pants feels like a loss. And losing-particularly when it comes to money but also when it comes to possessions-is so painful that humans will do just about anything to avoid it. So you end up buying those pants you can’t afford and being angry with yourself later. Don’t start the cycle. Leave the pants on the rack.

Money Rule #53: It isn’t about having it all. It’s about having what you value most.

When parents ask me what their kids need to learn about money, this is always at the top of my list. So many people today don’t seem to understand that money is a limited resource-and that means you can’t have everything. Spend your money in a way that you’re satisfied, not remorseful, after you do it. One way to get there is to track not only where you spend your money, but how you feel about the purchases you make. You thought that carpet cleaner charged too much? The restaurant portion was too small? You retired that jacket after two wearings? Write your feelings down. You won’t make the same mistake again.

I hope those few rules got you thinking-and that you’re inspired enough to share your own personal money rules with me! Thanks-in advance-for joining the conversation.

RetailMeNot is a registered trademark of RetailMeNot, Inc. Merchant trademarks are the property of the respective merchant and their presence does not necessarily mean that RetailMeNot, Inc has an affiliation with the merchant.